- Slovenia proposes a 25% tax on cryptocurrency income, targeting fiat conversions and purchases, effective January 1, 2026.
- Crypto-to-crypto transactions remain untaxed, but trades for goods, services, or fiat will face taxation under the law.
- The Finance Ministry aims for fairness, but critics warn of potential capital flight and youth migration abroad.
Slovenia, which was once considered a haven for bitcoin in Europe, has withdrawn a surprising step. On April 17, the Finance Ministry released a new draft law that imposes a 25% tax on income from cryptocurrency transactions. The plan is open for public comment and suggestion until May 5. In the case of the approval, it will become the reality from January 1, 2026.
According to the law, local citizens, who turn cryptocurrencies to fiat money or use it to pay for goods and services, have to pay taxes. The crypto-to-crypto transactions and instant transfers between wallets are not affected, but once you transfer your cryptocurrency to the real economy through shopping, it becomes taxable under the proposed law.
Finance Minister Klemen Boštjančič came out swinging in support of the plan, stating:
“The goal is not necessarily to increase revenue but to ensure fairness in the tax system.” He added, “Crypto assets should not be treated differently from other forms of investment.”
Slovenia Eyes Flat 25% Tax on Personal Crypto Gains
Currently, Slovenia taxes crypto payments and withdrawals at 10%, but casual profits dodge tax unless they’re part of a business operation. The new plan erases that grey zone. Now, even personal investors could see their profits taxed at a flat 25%, raising concerns from opposition leaders and the crypto community alike. Jernej Vrtovec from the opposition party New Slovenia didn’t hold back.
He warned:
“With excessive taxation, we will once again see young people and capital fleeing abroad.”
According to the Ministry of Finance, the step taken is to make things clear, fair, and consistent. In its paper, it states that the plan does not only establish the taxation of income from the same or similar financial instruments as one but also a clear regulation for taxpayers with the least possible administrative burden.
Crypto Tax Overhaul Set to Impact 98,000 Slovenians
It is assumed that through the use of a new tax system every year between €2.5 million and €25 million will be produced. This calculation is resulted in the expanding crypto sector in Slovenia that is expected to hit approximately 98,000 active users by 2025, representing about 4.6% of the population, as per Statista.
The proposal redefines what “disposal” of crypto means, now including any trade for fiat or swap for products and services. Transfers between personal wallets? Not taxed. But gifts, sales, and exchanges for value? All taxable. Slovenia wants citizens to keep detailed records and report gains in annual returns, with profits calculated by subtracting the purchase cost from the sale amount.
This is not the first time such an idea has been envisioned in Slovavia. A proposed bill in April 2022 was about getting 5% tax reduction on profits over €10,000 which was doomed to failure. As regards the present issue, it can be said that the finance ministry must be satisfied with the situation since the EU’s first bond emerging from blockchain technology has been raised in 2023.
That bond, worth €30 million (about $32.5 million), came with a 3.65% coupon and was settled using the Bank of France’s tokenized cash system. Slovenia’s bold entry into blockchain-backed finance turned heads in the EU. But now, that achievement risks being buried under a growing tax burden on digital gains.
